Financial Data and Key Metrics Changes - Flutter Entertainment reported a revenue growth of 19% and adjusted EBITDA of 156 million, with earnings per share increasing by 5.59% to 163 million, driven by a 43% growth in iGaming [29][30] - Sportsbook revenue grew by 8%, impacted by adverse sports results, while handle growth moderated to 12% [30][31] - International revenue grew by 14%, with UKI revenue up 20%, driven by strong sportsbook and iGaming performance [31][32] Market Data and Key Metrics Changes - The U.S. sportsbook GGR market share reached 43%, and iGaming GGR market share was 26% [10] - In the UKI market, Flutter increased its market share by 4 percentage points over the last two years [19] - Italy's Sisal brand saw online revenue growth of 41%, benefiting from favorable sports results [33] Company Strategy and Development Direction - Flutter aims to leverage its "Flutter Edge" to enhance product offerings and maintain market leadership, particularly in the U.S. [7][24] - The company plans to continue expanding into new markets, with acquisitions like Snai and NSX expected to enhance scale and diversification [9][24] - Flutter is focused on product innovation, including the launch of new features and loyalty programs to drive customer engagement [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. business's strength and the potential for continued customer acquisition [12][17] - The company is monitoring regulatory changes and potential tax increases in various states, believing it is well-positioned to mitigate impacts [18][22] - Flutter anticipates strong growth in 2025, with existing state revenue and adjusted EBITDA expected to grow by 33% and 176%, respectively [36][37] Other Important Information - Flutter's cash flow from operating activities increased by 67%, with free cash flow growth of 175% [34][35] - The company plans to repurchase up to 300 million in annualized cost savings by 2027 [44] Q&A Session Summary Question: Can you discuss the 80 million and Alberta's around $10 million [50][51] Question: What are the customer acquisition trends? - Management is pleased with customer acquisition opportunities and believes they can continue to grow the business [52] Question: What is the outlook for prediction markets? - Management sees potential in prediction markets but emphasizes the richness of their current sportsbook offerings [54] Question: How are customer acquisition trends between iGaming and sportsbook? - Management reports strong growth in iGaming, driven by product improvements and customer engagement [58] Question: What is the status of the Italian lottery bid? - Management is considering bidding for the lotto contract in Italy, evaluating the financial returns [63][64] Question: What are the early learnings from the Your Way product? - Early engagement with the Your Way product has been strong, with significant customization appealing to customers [71][72] Question: How does the company view handle growth in 2025? - Management does not obsess over handle growth, focusing instead on revenue and EBITDA, which are trending positively [98][100] Question: What is the impact of promotional reinvestment in the U.S.? - Management is disciplined in allocating promotional spending to ensure good returns, with a focus on customer acquisition [125][126] Question: Are there signs of consumer weakness in older U.S. states? - Management does not see any signs of consumer weakness and believes the business is resilient in economic downturns [132][133] Question: What is the strategy for media rights partnerships? - Management is thoughtful about media rights, leveraging their scale to negotiate favorable contracts [137]
Flutter Entertainment(FLUT) - 2024 Q4 - Earnings Call Transcript